Finance

Show the steps on the tables l uploaded. For the part C,just give me a paragraph is fine( Do not need a lot)

1. A. ForecastandBreakevenAnalysis(for40%ofgrade)
   •  Forecast the number of shirts to be produced for shipment and invoicing in the 6th month
     (the 6th month is the 1st month that the shirts are available for sale and shipment) for input
     into the organization’s Sales and Operations Plan (S&OP),
   •  Forecast revenues in the 6th month (in February of next year) and show your results in
     tabular form. (Attach this table as an attachment to the memo you are writing. Be sure to
     reference the attachment in the text of your memo.)
   •  Develop a breakeven analysis

o How many shirts must be sold in total to breakeven? What will the resulting

cumulative revenue be?
o Assuming that the monthly sales volume and revenue remain constant after the first

month of sales, calculate the time (number of months) it will take to breakeven,

B. SensitivityAnalysis(for40%ofgrade)
 Now, that you have developed your breakeven analysis – your base case, perform four (4)

separate sensitivity analyses, each starting with the base case, by calculating breakeven
volumes, revenues, and months to breakeven for

o a 5% higher shirt price
o or a 20% higher average order volume
o or a 20% higher shirt cost
o or a 10% lower fixed cost

C. Market Rates for Advertising and Marketing Metrics (for 20% of grade)

•  Do a bit of research to determine market prices/rates for marketing materials and on-line
  advertising and see if they differ (or not) from what Sports Edge is spending
•  Suggest some marketing metrics and discuss how these metrics can be used to (i)
  forecast better and (ii) assess sales and marketing effectiveness.